Housing affordability has reached an all-time low, despite recent declines in house prices. This unprecedented decrease isn’t due to cheaper homes, but rather the impact of multiple interest rate increases throughout the year. Three rate hikes have significantly impacted potential homebuyers’ financial capacity. The rising cost of borrowing is outweighing any benefits from falling property values. Experts suggest this trend indicates a worsening situation for those attempting to enter the housing market. This creates significant challenges for prospective homeowners and raises concerns about the stability of the housing sector. The combination of high interest rates and persistent demand continues to drive down affordability.